Drug companies see double digit growth in Q1

By Tat Dat   April 22, 2022 | 05:42 am PT
Drug companies see double digit growth in Q1
Lab technicians work on the production of anti-Covid drug molnupiravir in southern Binh Duong province, Feb. 23, 2022. Photo by VnExpress/Quynh Tran
Demand for Covid-19 medicines and other items drove pharmaceutical firms’ profits up in the first quarter.

The country’s largest drugmaker, DHG Pharmaceutical JSC, reported a 25 percent jump in profits to VND255 billion (US$11.1 million), its highest since 2005.

Traphaco JSC’s profits rose by 55 percent to VND83 billion, and Imexpharm JSC’s by 26 percent to VND52.6 billion.

Other drug companies also reported double-digit increases in profits.

DHG Pharmaceutical reported huge demand for Covid medicines such as klamentin, medlon and bocalex, while the Traphaco management said cough medicines and mouthwashes were among its top sellers.

Domesco Medical Import Export JSC attributed its 32 percent growth in the first quarter to new Covid prevention and long-Covid treatment products.

Leading brokerage SSI Securities said the healthcare market would surpass pre-pandemic levels in terms of size this year.

It expected mild Covid treatment products such as fever drugs and vitamins to be top selling products thanks to Vietnam’s high vaccination rate and less severe variants.

Pharmaceutical firms are expected to prosper until mid-2022 at least, it added.

Prices could rise slightly in the near future since China might tighten policies on active pharmaceutical ingredient (API) production to protect the environment, driving raw material prices up.

China accounted for 44 percent of API production in 2019, according to a report by Indian financial institution ICICI.

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